Factor Comparison A set of factors are identified as determining the worth of jobs. Typically the number of factors is small . Under this method,A few key jobs are selected and compared in terms of common factor.
Examples of factors are:
Skill
Responsibilities
Effort
Working Conditions
Procedure of Factor Comparison Method
1) Select and define the Factor
2) Select Key Jobs.
3)Rank key jobs by Factor.
4)Decide rates for key jobs
5)Apportion the wage Rate.
6)Evaluate the remaining Jobs
Advantage
*The value of the job is expressed in monetary terms.
*Can be applied to a wide range of jobs.
*Can be applied to newly created jobs.
* Money values are assigned in a fair and objective manner.
Disadvantage
*The pay for each factor is based on judgements that are subjective.
*The standard used for determining the pay for each factor may have build in biases that would affect certain groups of employees (females or minorities).
* It is difficult to understand and operate.
*It is time consuming and expensive method
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